Requirement 1a. Compute the acid-test ratio for 2024 and 2023. (Round to two decimals.) (Abbreviations used: Cash Cash including cash equivalents; ST invest.= short-term investments. Round the acid test ratios to two decimals, X.XX.) = = Acid-test ratio 2024 2023 Requirements 1. Compute these ratios for 2024 and 2023: a. Acid-test ratio (Round to two decimals.) b. Accounts receivable turnover (Round to two decimals.) c. Days' sales in receivables (Round to the nearest whole day.) 2. Considering each ratio individually, which ratios improved from 2023 to 2024 and which ratios deteriorated? Is the trend favorable or unfavorable for the company? Print Done - X = = Data table Balance sheet-partial Current Assets: Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) Print $ 2024 2023 2022 Done - X 65,000 $ 45,000 95,000 $ 130,000 175,000 150,000 290,000 230,000 245,000 330,000 315,000 290,000 40,000 50,000 80,000 925,000 825,000 555,000 625,000 620,000 780,000 5,830,000 5,190,000 4,200,000

Requirement 1a. Compute the acid-test ratio for 2024 and 2023. (Round to two decimals.) (Abbreviations used: Cash Cash including cash equivalents; ST invest.= short-term investments. Round the acid test ratios to two decimals, X.XX.) = = Acid-test ratio 2024 2023 Requirements 1. Compute these ratios for 2024 and 2023: a. Acid-test ratio (Round to two decimals.) b. Accounts receivable turnover (Round to two decimals.) c. Days' sales in receivables (Round to the nearest whole day.) 2. Considering each ratio individually, which ratios improved from 2023 to 2024 and which ratios deteriorated? Is the trend favorable or unfavorable for the company? Print Done - X = = Data table Balance sheet-partial Current Assets: Cash Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) Print $ 2024 2023 2022 Done - X 65,000 $ 45,000 95,000 $ 130,000 175,000 150,000 290,000 230,000 245,000 330,000 315,000 290,000 40,000 50,000 80,000 925,000 825,000 555,000 625,000 620,000 780,000 5,830,000 5,190,000 4,200,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 80BPSB: Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial...

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